Article 179Act No. 3815, Sec./Art. 179

Illegal use of uniforms or insignia.-The penalty ot arresto mayor shall be imposed upon any person who shall publicly and improperly make use of insignia, uniforms or dress pertaining to an office not held by such person or to a class of persons of Which he is not a member.

SECTION TWO.-False testimony

REVISED PENAL CODE TEXT AND SPECIAL PENAL LAWS

price, does not constitute a trust receipt transaction and

is outside the purview and coverage of this Decree.

Section 5. Form of trust receipts; contents. A trust receipt

need not be in any particular form, but every such receipt

must substantially contain (a) a description of the goods,

documents or instruments subject of the trust receipt; (2)

the total invoice value of the goods and the amount of

the draft to be paid by the entrustee; (3) an undertaking

or a commitment of the entrustee (a) to hold in trust for

the

entruster the goods, documents or instruments

therein described; (b) to dispose of them in the manner

provided for in the trust receipt; and (c) to turn over the

proceeds

of

the

sale

of

the

goods,

documents

or

instruments to the entruster to the extent of the amount

owing to the entruster or as appears in the trust receipt or

to return the goods, documents or instruments in the

event

of

their

non-sale

within

the

period specified

therein.

The trust receipt may contain other terms and conditions

agreed

upon

by

the

parties

in

addition

to

those

hereinabove enumerated provided that such terms and

conditions shall not be contrary to the provisions of this

Decree, any existing laws, public policy or morals, public

order or good customs.

Section 6. Currency in which a trust receipt may be

denominated. A trust receipt may be denominated in the

Philippine currency or any foreign currency acceptable

and eligible as part of international reserves of the

Philippines,

the

provisions

of

existing law, executive

orders,

rules

and

regulations

to

the

contrary

notwithstanding: Provided, however, That in the case of

trust receipts denominated in foreign currency, payment

shall be made in its equivalent in Philippine currency

computed at the prevailing exchange rate on the date

the

proceeds

of

sale

of

the

goods,

documents

or

instruments held in trust by the entrustee are turned over

to the entruster or on such other date as may be

stipulated

in

the

trust receipt or other agreements

executed between the entruster and the entrustee.

Section 7. Rights of the entruster. The entruster shall be

entitled to the proceeds from the sale of the goods,

documents or instruments released under a trust receipt

to the entrustee to the extent of the amount owing to the

entruster or as appears in the trust receipt, or to the

return of the goods, documents or instruments in case of

non-sale, and to the enforcement of all other rights

conferred on him in the trust receipt provided such are

not contrary to the provisions of this Decree.

The entruster may cancel the trust and take possession of

the goods, documents or instruments subject of the trust

or of the proceeds realized therefrom at any time upon

default or failure of the entrustee to comply with any of

the terms and conditions of the trust receipt or any other

agreement between the entruster and the entrustee, and

the entruster in possession of the goods, documents or

instruments may, on or after default, give notice to the

entrustee of the intention to sell, and may, not less than

five days after serving or sending of such notice, sell the

goods, documents or instruments at public or private

sale, and the entruster may, at a public sale, become a

purchaser. The proceeds of any such sale, whether public

or private, shall be applied (a) to the payment of the

expenses thereof; (b) to the payment of the expenses of

re-taking, keeping and storing the goods, documents or

instruments; (c) to the satisfaction of the entrustee's

indebtedness to the entruster. The entrustee shall receive

any surplus but shall be liable to the entruster for any

deficiency. Notice of sale shall be deemed sufficiently

given if in writing, and either personally served on the

entrustee or sent by post-paid ordinary mail to the

entrustee's last known business address.

Section 8. Entruster not responsible on sale by entrustee.

The entruster holding a security interest shall not, merely

by virtue of such interest or having given the entrustee

liberty

of

sale

or

other

disposition

of

the

goods,

documents or instruments under the terms of the trust

receipt transaction be responsible as principal or as

vendor under any sale or contract to sell made by the

entrustee.

Section 9. Obligations of the entrustee. The entrustee

shall (1) hold the goods, documents or instruments in

trust for the entruster and shall dispose of them strictly in

accordance with the terms and conditions of the trust

receipt; (2) receive the proceeds in trust for the entruster

and turnover the same to the entruster to the extent of

the amount owing to the entruster or as appears on the

trust receipt; (3) insure the goods for their total value

against loss from fire, theft, pilferage or other casualties;

(4) keep said goods or proceeds thereof whether in

money

or

whatever

form,

separate

and

capable

of

identification as property of the entruster; (5) return the

goods,

documents

or

instruments

in

the

event

of

non-sale or upon demand of the entruster; and (6)

observe all other terms and conditions of the trust receipt

not contrary to the provisions of this Decree.

Section 10. Liability of entrustee for loss. The risk of loss

shall

be

borne

by

the

entrustee.

Loss

of

goods,

documents or instruments which are the subject of a

trust receipt, pending their disposition, irrespective of

whether or not it was due to the fault or negligence of the

entrustee,

shall not extinguish his obligation to the

entruster for the value thereof.

Section 11. Rights of purchaser for value and in good

faith. Any purchaser of goods from an entrustee with

right to sell, or of documents or instruments through

their customary form of transfer, who buys the goods,

documents, or instruments for value and in good faith

from the entrustee, acquires said goods, documents or

instruments free from the entruster's security interest.

Section 12. Validity of entruster's security interest as

against creditors. The entruster's security interest in

goods,

documents,

or

instruments

pursuant

to

the

written terms of a trust receipt shall be valid as against all

creditors of the entrustee for the duration of the trust

receipt agreement.

Section 13. Penalty clause. The failure of an entrustee to

turn

over

the

proceeds

of

the

sale

of

the

goods,

documents or instruments covered by a trust receipt to

the extent of the amount owing to the entruster or as

appears in the trust receipt or to return said goods,

documents or instruments if they were not sold or

disposed of in accordance with the terms of the trust

receipt shall constitute the crime of estafa, punishable

under the provisions of Article Three hundred and fifteen,

paragraph one (b) of Act Numbered Three thousand

eight hundred and fifteen, as amended, otherwise known

as the Revised Penal Code. If the violation or offense is

committed by a corporation, partnership, association or

other juridical entities, the penalty provided for in this

Decree shall be imposed upon the directors, officers,

employees

or

other

officials

or

persons

therein

responsible for the offense, without prejudice to the civil

liabilities arising from the criminal offense.

Section 14. Cases not covered by this Decree. Cases not

provided for in this Decree shall be governed by the

applicable provisions of existing laws.

Section 15. Separability clause. If any provision or section

of this Decree or the application thereof to any person or

circumstance is held invalid, the other provisions or

sections hereof and the application of such provisions or

sections to other persons or circumstances shall not be

affected thereby.

Section 16. Repealing clause. All Acts inconsistent with

this Decree are hereby repealed.

Section 17. This Decree shall take effect immediately.

Done in the City of Manila, this 29th day of January, in the

year of Our Lord, nineteen hundred and seventy-three.

© Compiled By RGL

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